3. A Prediction Problem The Danish Krone is currently pegged to the euro. Suppose that the Eurozone increases its money supply. a. Predict how this would affect Danish income, interest rates, trade balance, and money supply. (For simplicity, focus upon how the change in Eurozone interest rates (i) affects Denmark; do not worry about how the change in Eurozone income (Y) affects it, even though the Eurozone is obviously Denmark's biggest trading partner. If you want to do both, just for fun, you are welcome to try.) b. Now suppose that Denmark lets the Krone float. Predict how the increase in the Eurozone's money supply would affect Danish income, interest rates, the Danish trade balance, and the value of the Krone